Statement by Americans for Consumer Education and Competition (ACEC) Executive Director, Rebecca Reid in Opposition to H.R. 5546

“Americans for Consumer Education and Competition (ACEC) and its more than 120,000 members strongly oppose H.R. 5546, The Credit Card Fair Fee Act, which is an anti-consumer bill that, if enacted will squeeze consumers by having them pick up the costs of electronic payment processing – a cost retailers currently and rightly pay for given the many benefits associated with the ability to accept their customers’ method of payment. This legislation will only result in consumers picking up the tab for card acceptance while large retailers with deep pockets increase their profits.

“Large retailers in this country have joined forces in the name of protecting the consumer but, in fact, what retailers really want is to use price controls to pass on the cost of providing electronic payment to their customers. Many consumers are already struggling financially during this difficult economic climate and to force them to pay more for goods and services at the checkout line is just wrong.

“H.R. 5546 bolsters large retail special interests by calling for the heavy hand of government to regulate the pricing around payment card acceptance. This is a wolf in sheep’s clothing bill that will take a big bite out of the pocketbooks of the millions of consumers who use payment products as a secure, safe and convenient way to pay at the checkout counter. Retail special interests in Australia tried a similar approach in the name of ‘consumer protection’ but ultimately ended up breaking their promises of providing lower prices and no checkout fees. According to Datamonitor’s independent analysis of the impact of interchange fee regulation in Australia, “The direct impacts of the interchange reforms on consumers have been wholly negative. They are paying more in annual fees for credit cards and loyalty schemes, some retailers are now surcharging for credit card usage and they are not seeing lower prices at the checkout."

“Since H.R. 5546 was first introduced, hundreds of ACEC members have sent letters discouraging legislators from supporting the bill in hopes of stopping retailers from having consumers pick up costs associated with the daily expenses businesses must pay to accept payment products. It is apparent that ACEC members care about the increased convenience, security, purchasing power and other benefits they get from their credit and debit cards every day – and do not want to see these benefits disappear, while at the same time having to pay higher prices with less choice. If H.R. 5546 becomes law it will hurt consumers and stifle a marketplace that has produced tremendous efficiency and value.

“On behalf of our members nationwide, ACEC is asking Congress to protect consumers against large retail interests and their lobby who want to increase their profits at the expense of consumer choice and higher fees.”